providing high-precision quality and service.
Through more than half a century of logistics operations for the cosmetics industry (Cosmetics.Toiletries), the Sakata Group has cultivated a wide range of expertise. In addition to compliance with the PMD Act (Pharmaceutical and Medical Device Act), we provide high-precision logistics services with confidence. This includes operational management for logistics tasks such as piece picking, transport and delivery management, and the construction of logistics information systems that achieve both labor savings and high quality. Furthermore, we link the functions of shipping labels and transport labels through our proprietary labeling system, which is integrated with our picking, inspection, and delivery management systems.
Our staff, who are well-versed in cosmetics logistics, act as an agent for our customers, providing support for logistics innovation and undertaking business operations while effectively utilizing our customers’ assets.
Value.Strengths
Service Q&A
Overview.3PL Service List
3PL IT System Overview
List of Locations
Quality Management OverviewN.Osaka.Minoh Warehouse
MOVIE
(Cosmetics.3PL Logistics)
As part of our 100th-anniversary project, the Sakata Group began operations at the North Osaka Office.Minoh Warehouse in November 2019. We introduce the cosmetics logistics and 3PL services (video) at this state-of-the-art logistics center.
Distribution Overview of the Cosmetics Industry (Professional and General-use)
Cosmetics Industry Structure
The following is a simplified diagram of distribution channels in the cosmetics industry. While distribution was once divided into categories like professional, general, or mail-order, recent structural changes and the growth of organized retailers have led to a fusion of distribution forms. Additionally, imports of raw materials and finished products are increasing.
Value.Strengths
① Logistics Issues (Examples)
- Orders are received in loose units (e.g., one hair color bottle) or inner boxes, requiring efficient high-mix low-volume shipping.
- Many products are high-value, and customers demand “zero” shipping errors.
- Since products are shipped in cosmetic boxes, careful handling and neat packaging are required to avoid damaging outer packaging (shrink wrap, etc.). Damaged items are treated as defective.
- Large-scale new product launches occur every season, leading to significant fluctuations in logistics volume.
- When importing cosmetics for domestic sale, a cosmetics manufacturing license (Packaging.Labeling.Storage) is required under the PMD Act to distribute products within Japan.
② Customer Request Examples (Examples)
- Need to build a logistics system that can handle expanded product lines, distribution channels, and new business formats (online sales, etc.).
- Desire to reconfigure the logistics system to further improve service and handle future sales increases.
- Want to build a mechanism for effective (cost-suppressed) high-mix low-volume shipping.
- In addition to the above, want to build a system where even non-experts can maintain high shipping accuracy.
- Desire to eliminate damage claims (loss of sales opportunities) through a product-friendly handling system.
- Need a flexible system capable of temporary capacity expansion during peak periods, such as new product launches.
- Requirement for domestic warehouse proposals that either hold or can obtain a manufacturing license (Packaging.Labeling.Storage).
- Need proposals for warehouses that can appropriately manage products based on their characteristics, such as dangerous goods or temperature-controlled items.
Sakata Warehouse 3PL Services solve these challenges
① High-Mix Low-Volume Shipping Mechanism (System)
We standardized and streamlined shipping operations using our Standardized Shipping Label System, which integrates shipping and transport labels. We also improved productivity by introducing a Voice Picking System (VPS) for loose item picking. This system also supports parcel delivery labels, enabling B2C logistics.
② Mechanism for High Shipping Accuracy (Error rate: 20ppm or less)
We introduced a mechanism to manage loose shipping by linking VPS with our inspection system. Additionally, we implemented a delivery confirmation system for carrier-specific package counts and barcode inspections for case-unit products to ensure high accuracy by releasing products only after verifying shelf inventory.
③ Management of Volume Fluctuations
By standardizing loose picking through shelf location management and the volume calculation functions of our label system, we enabled capacity expansion via temporary staffing during peak periods. We further improved productivity by designing layouts based on shipping frequency for each product category.
④ Proposals for Licensed Manufacturing (Packaging.Labeling.Storage) Warehouses
By appointing our own responsible technical supervisors, we can obtain manufacturing licenses for cosmetics and quasi-drugs. We already own licensed warehouses in Kanto and Kansai. We can handle inspections of imported cosmetics based on the PMD Act, labeling, kit assembly, and manufacturing record creation.
⑤ Dangerous Goods and Constant-Temperature Warehouse Proposals
We can propose storage and inventory management tailored to product characteristics by utilizing dangerous goods warehouses on our premises, or nearby partner facilities, and by installing constant-temperature storage within our warehouses.
① Support for B2B and B2C High-Frequency Small-Lot Shipping via Systematization (VPS, etc.)
By systematizing major receiving and shipping tasks using WMS and operational tools, we suppressed labor costs for high-frequency small-lot shipping and achieved high-quality logistics suitable for both B2B and B2C sectors.
② Variable Logistics Costs via Unit-Based Pricing linked to Shipping Volume
Based on loose picking tasks via VPS, we set shipping fees using unit pricing per package multiplied by shipping volume. This converted logistics costs into variable expenses, achieving effective cost control.
③ Elimination of Delivery Delays during Peak Volume Fluctuations
Even with volume fluctuations several times higher than normal, our system allows for easy staffing increases and effective product placement. This eliminated midnight work and delivery delays while maintaining service quality.
④ Direct Domestic Distribution of Imported Goods without going through Domestic Factories
Previously, imported cosmetics had to go through a licensed headquarters factory before moving to a warehouse. By outsourcing to our licensed warehouses, manufacturing and domestic distribution center operations can be integrated as a single package, reducing pressure on factory space.
⑤ Reduced Transport Costs via Integrated Dangerous Goods and Constant-Temperature Facilities
By storing dangerous goods and temperature-sensitive products in on-site or nearby partner warehouses, we reduced costs previously incurred for transfers to specialized warehouses.
Service Q&A
We have organized frequently asked questions from the cosmetics industry and our responses regarding our 3PL services.
Sakata Warehouse offers one-stop solutions, ranging from business analysis, problem identification, and improvement proposals via logistics improvement consulting (paid) to actual business execution (Warehousing.3PL Services). Please feel free to consult us on any logistics matters, such as logistics improvement, logistics system restructuring, and cost control
From the introduction and operation of large-scale shipping support systems such as Digital Picking Systems (DPS) to cart picking systems using wireless handy terminals, POS inspection systems, and integrated management of Shipping.Transport labels via carrier EDI using our proprietary “Standardized Shipping Label System,” we propose logistics systems based on our operational expertise in logistics improvement. Furthermore, we support the full utilization of những systems through smooth startup assistance during implementation. *2
[Note] *2. System implementation support fees and support contracts are required separately from system costs.
We provide centralized inventory management at our logistics centers, handling shipping.packing and bulk deliveries to sales offices tailored to salesperson/salon deliveries for beauty wholesalers. Furthermore, we implement high-precision inventory management via barcode systems and provide integrated management through our systems for the accurate sorting of back-ordered products by salesperson/salon.
Through our warehouses licensed for cosmetics and quasi-drugs under the PMD Act, we handle everything from manufacturing to domestic distribution center operations. Our personnel, well-versed in both logistics and the PMD Act, will manage your product operations.
Sakata Warehouse supports converting logistics costs into variable expenses based on customer work volume. By reviewing logistics data (receiving.shipping.storage volumes) provided over a specific period, we establish contracts using unit-based pricing *3 for storage.handling.picking.packing fees.
[Note] *3. Unit-based pricing includes a minimum guarantee fee.which applies if volume falls below a certain level. Some costs include fixed expenses.
The Sakata Group partners with line-haul companies and department store delivery agencies to issue specialized vouchers and handle deliveries required for department stores. For individual (BtoC) delivery services, we manage time-specified deliveries.cash-on-delivery services and payment management linked to delivery information in collaboration with transport companies.
Overview.3PL Service List
The Sakata Group supports the realization of integrated Supply Chain Logistics from domestic suppliers to end users. We introduce our 3PL services for the cosmetics industry.
Overall Image of Logistics Outsourcing
(1) Warehousing.3PL Services
① Inventory Management (Storage)
Inventory is managed by our independently developed WMS. Integrated with location management, it enables real-time physical management at the SKU (piece) level and FIFO management of manufacturing lots.
② Transport and Delivery
We combine optimal transport modes using simulation systems. Through EDI tracking with multiple carriers, we respond quickly to retail inquiries. We also provide delivery info via email for mass shipments like new product launches.
③ Piece Picking
We introduced VPS to standardize loose picking. Together with our integrated label system, we provide total operational efficiency and high logistics quality.
④ Information Systems
In addition to WMS, we manage total operations via ordering systems, labeling systems linked to material handling equipment, and transport management systems to deliver products to end users.
⑤ Quality Management
We implement improvement activities such as employee goal management and Zero Picking Error contests*1, providing logistics quality at the 1ppm level.
Note: *1. A TQC activity aimed at zero errors, conducted jointly with our customers.
(2) PMD Act Compliance.Manufacturing
Manufacturing (Packaging.Labeling.Storage)
At our licensed warehouses, we perform tasks based on the PMD Act, including inspections of imported cosmetics, repackaging, labeling, and manufacturing record creation by technical supervisors.
3PL IT System Overview
We link receiving, shipping, and delivery management for cosmetics through core systems like WMS/TMS and warehouse support tools. We promote systematization and visualization to maintain quality and achieve zero errors. We also provide high-quality Fulfillment Services through web-based ordering and shipping history tools.
3PL Logistics System Overview (Standardization.Efficiency.Visualization)
Major System Introduction
List of Locations
We operate centers in Kansai, Chubu, and Kanto, providing warehouse functions that comply with the PMD Act for cosmetics and medical devices. We also provide BCP-compliant services through the networking of each location.
Quality Management Overview
We established a department for company-wide quality management. We strive to improve total logistics quality through education for 5S and Kaizen activities at each center. We also hold regular meetings with customers to analyze causes of claims and report on Kaizen activities to ensure stable quality management.
